Two REEP members attend Tax Stamp and Traceability Forum conference in Cape Town

Kirsten van der Zee and Estelle Dauchy attended the Tax Stamp and Traceability Forum (TSTF), held in Cape Town from 7 to 9 April 2025. The forum was a meeting place for stakeholders involved in tax stamp (TS) and track and trace systems (T&TS), and drew vendors from across the development and distribution spectrum, and revenue authorities from around the world. The event provided a platform for knowledge exchange through conference sessions, while the exhibition area showcased the latest innovations in TS and T&TS.

Kirsten van der Zee presented an updated tax simulation model designed to calculate the per-pack break-even price for implementing a T&TS in South Africa: essentially, the price point at which the government would fully recover its T&TS implementation costs. The model highlighted that with illicit trade accounting for nearly 60% of the cigarette market in South Africa, the potential revenue gains from a well-functioning T&TS would far exceed the implementation costs, providing a compelling case for South Africa to implement T&TS.

Estelle Dauchy presented findings from a study titled “Evaluating Compliance with Track and Trace and Other Regulations in Pakistan’s Cigarette Market.” The study evaluated illicit trade following the introduction of a T&TS in Pakistan in July 2022. Despite the system being in place for nine months at the time of the study (April 2023), only three of 26 registered companies had fully implemented it. As a result, 32% of the packs collected in a survey of discarded cigarette packs lacked tax stamps. Many of these non-compliant packs also failed to meet other regulatory requirements, such as health warnings, minimum pricing, manufacturer identification, and age restrictions. Consequently, there was little increase in the tax revenue collected in the 2022/23 fiscal year.

However, more recent data (obtained from the FBR website in 2025) suggest that T&TS in Pakistan is showing improvements. According to a retired senior revenue official from Pakistan, tax revenues have begun to increase since fiscal year 2024/25, indicating that enforcement and compliance is improving over time.

The presentations are available on request from Kirsten.vanderZee@uct.ac.za and Estelle.Dauchy@uct.ac.za.